Moving to Canada is exciting — and buying a home here is one of the most meaningful milestones on that journey. But the Canadian mortgage system can feel unfamiliar, especially if you’ve owned property in another country. This guide will walk you through everything you need to know as a newcomer.

First, the Good News

Canada has mortgage programs specifically designed for newcomers. You don’t need to be a citizen, and you don’t need years of Canadian credit history to qualify. Many lenders — especially through a mortgage agent — have flexible programs that recognize your situation.

What Lenders Look For

Canadian lenders evaluate mortgage applications based on several factors:

1. Credit History

In Canada, your credit score is built through your Canadian borrowing activity — credit cards, car loans, lines of credit. If you’re new, you may have little or no Canadian credit history. This doesn’t disqualify you, but it does affect which lenders and programs you’re eligible for.

Tip: Apply for a secured credit card as soon as you arrive and use it regularly. Even 6–12 months of Canadian credit history helps significantly.

2. Employment and Income

Lenders want to see stable, verifiable income. If you’re employed full-time, you’ll typically need your most recent pay stubs and a letter of employment. If you’re self-employed or contract-based, the requirements are different — but solutions exist.

3. Down Payment

For a first home purchase, you’ll need a minimum down payment of:

• 5% of the purchase price for homes up to $500,000
• 5–10% for the portion between $500,000 and $999,999
• 20% for homes $1 million and above

A larger down payment always strengthens your application.

4. Immigration Status

Most lenders accept:

• Permanent Residents (PR)
• Work Permit holders (some restrictions apply)
• Temporary Residents in certain circumstances

Each situation is unique, so it’s worth speaking with a mortgage agent who understands newcomer files.

Newcomer Mortgage Programs

Several major lenders offer dedicated newcomer mortgage programs with more flexible criteria, including reduced credit history requirements and alternative income documentation. These programs are not always advertised — a mortgage agent will know which lenders to approach for your specific profile.

What About My Credit History from Back Home?

Unfortunately, Canadian lenders cannot access credit records from other countries — your Indian, UK, or US credit history doesn’t transfer. However, some lenders will accept international credit reports as a supporting document, and a strong credit history from abroad can strengthen your application even if it doesn’t replace Canadian credit.

Common Mistakes Newcomers Make

• Waiting too long to build Canadian credit — start the moment you arrive
• Going directly to one bank — banks offer only their own products; a mortgage agent has access to dozens of lenders
• Underestimating closing costs — budget an additional 1.5–4% of the purchase price for land transfer tax, legal fees, and other closing costs
• Not getting pre-approved — a pre-approval tells you exactly what you can afford before you start house hunting

You Don’t Have to Figure This Out Alone

I moved to Canada in 2020 and spent over a decade working in mortgage finance before that. I understand both the Canadian system and the experience of navigating it as someone new to this country. I work with newcomers across Ontario regularly and know which lenders offer the best programs for your profile.

Let’s talk — no pressure, no cost. Call or text 437-985-0239, or visit www.lagommortgages.com.

Varun Sharma | Mortgage Agent (L1) | Lagom Mortgages | Silver Leaf Financial Group Inc. (Brokerage Licence #13415) | Originator Licence #M20003632